The AdWords system can be a bit confusing for beginners. If you are new, there are three elements that are important for you to understand. If you have trouble with the information below, it may be best to allow a more seasoned veteran of Adwords handle your campaign until you get a handle on things.

Don’t box me in.

The clickthrough rate is calculated by taking the number of times that someone clicks on your ad and dividing that by the number of times the ad is visible to others. Ads and keywords have their own clickthrough rates. However, there is data available that allows you to see how your campaign is doing as a whole if you would like to view that.

Your clickthrough rate helps you to see whether your advertisements, keywords and campaigns are ultimately successful or not. For instance, if your keyword CTR is acceptable, it means that you are targeting the people who are using Internet search engines well. If you continue to make your ads and keywords meaningful to them, you will continue to get more clicks.

You can save money on your campaign by making your Quality Score better; your clickthrough rate can help with this.

Impressions

Impressions really are not hard to understand. Impressions indicate how many times your advertisement is displayed when a user searches your keywords on Google or the Content Network.

CPC or Cost Per Click

The cost per click is the amount of money you owe every time a person clicks your advertisement. For instance, let’s say your advertisement gets three clicks. You owe two dollars for the first click, three dollars for the second and four dollars for the third. As a result, your average CPC is $3.00.

While these three elements are important to navigating an AdWords campaign, they are not the only terms that you need to understand in order to be successful. It is important to find out more about things like relative CTR and conversion rate as well. After you educate yourself on Adwords, you can figure out how well your campaign is going and how you can improve it in the future so that things go even more smoothly. A little knowledge goes a long way; with this information, you should do well in the future!